WO2020202220A1

WO2020202220A1 - System and method for real-time loan approval

Info

Publication number: WO2020202220A1
Application number: PCT/IN2020/050330
Authority: WO
Inventors: Aravindan RANGASWAMY
Original assignee: Creditap Technologies Pvt. Ltd.
Priority date: 2019-04-04
Filing date: 2020-04-04
Publication date: 2020-10-08

Abstract

The various embodiments of the present invention provide a system and method for enabling a user to avail a loan through real-time validation and authentication of the user's credentials and identity. The present invention also provides a kiosk for enabling an automated real-time communication between a user applying for a loan and an entity providing the loan. The system comprises a digital platform for verification of a user's identification, authentication of the user's identification and credentials, verification and evaluation of credit-worthiness of the user and an end-to-end loan management module. The platform is configured for a real-time verification, authentication and evaluation of user information, thereby enabling lending institutions to take reliable, automated and instantaneous decision on a loan application. The platform goes beyond the conventional procedures by utilizing predictive analytical models in analyzing data from the user's social media and digital networking profiles.

Description

System and method for Real-time Loan Approval

CROSS-REFERENCE TO RELATED APPLICATIONS

This patent application claims the priority of the Indian Provisional Patent Application filed on April 4, 2019 with the number 201941013602 and titled, "System and method for Real-time Loan Approval and Risk Based matching of Borrowers to Financiers", the contents of which are incorporated herein by the way of reference.

The present invention is generally related to a system and method for real-time financial transactions. The present invention is more particularly related to a system and method for real-time validation and authentication for enabling a financial transaction. The present invention is more particularly related to a system and method for enabling a user to avail a loan through real-time validation and authentication of the user’s credentials and identity. The present invention is also related to a portable kiosk for enabling an automated real-time communication between a user applying for a loan and an entity lending the loan.

BACKGROUND OF THE INVENTION

Modern computing, along with fast and reliable communication means have drastically changed the way of human life. With increasing ease and security features, many users are resorting to using computing devices for financial transactions. E-commerce and digital financial services are a prime focus of most of the world’s top technology companies today.

One widely carried out financial activity is lending of loans. A loan applicant is required to satisfy a set of preset criteria, which is evaluated by an entity lending the loan. These criteria include a history of the user’s financial activities, credit score and proof of requirement of the loan. The lending entity also verifies the identity of the user before finalizing the lending of the loan.

Currently, the process of lending a loan requires a physical presence of the loan applicant at the location of the lending entity. The lending entity takes some time to verify and authenticate the loan application before approving the loan application. There are no systems to enable an automated real-time processing and approval of loans.

Hence, there exists a need for a reliable and automated real-time system to enable application and approval loans. There is also a need for systems that enable a portable kiosk that allows a loan applicant to digitally provide the required authentication and verification information. There also exists a need for methods to reliably process the information provided by a loan applicant and automatically approve or reject a loan application.

The abovementioned shortcomings, disadvantages and problems are addressed herein, which will be understood by reading and studying the following specification.

OBJECT OF THE INVENTION

The primary object of the present invention is to provide a system and method for real-time validation and authentication for enabling a financial transaction.

Another object of the present invention is to provide a portable kiosk for enabling an automated real-time communication between a user applying for a loan and an entity providing the loan.

Yet another object of the present invention is to provide a system and method for enabling a user to avail a loan through real-time validation and authentication of the user’s credentials and identity.

Yet another object of the present invention is to provide for methods to reliably process the information provided by a loan applicant and automatically approve or reject a loan application.

These and other objects and advantages of the present invention will become readily apparent from the following detailed description taken in conjunction with the accompanying drawings.

SUMMARY OF THE INVENTION

The various embodiments of the present invention provide a system and method for enabling a user to avail a loan through real-time validation and authentication of the user’s credentials and identity. The present invention also provides a kiosk for enabling an automated real-time communication between a user applying for a loan and an entity providing the loan.

According to one embodiment of the present invention, a system is provided for enabling a user to avail a loan through real-time validation and authentication of the user’s credentials and identity. The system comprises a digital platform for verification of a user’s identification, authentication of the user’s identification and credentials, verification and evaluation of credit-worthiness of the user and an end-to-end loan management module. The platform is configured for a real-time verification, authentication and evaluation of user information and preset specifications for the analysis of a user’s profile, thereby enabling lending institutions to take reliable, automated and instantaneous decision on a loan application. The platform goes beyond the conventional verification, authentication and evaluation procedures by utilizing predictive analytical models in analyzing data from the user’s social media and digital networking profiles.

According to one embodiment of the present invention,a lead management module is provided. The lead management module enables a user to automatically apply for loans through a portable kiosk. The portable kiosk is a dedicated hardware module that enables a user to upload a plurality of preset information and credentials necessary to process a loan application. The portable kiosk comprises a plurality of sensors including biometric sensors, imaging sensors, audio sensors, location sensors and proximity sensors. The portable kiosk enables a loan applicant to check loan application eligibility, calculate EMIs, present a loan application, upload loan application documents, authenticate real-time through biometric sensors and track a loan application. The portable kiosk is communicatively coupled with a plurality of computing devices and network devices. The data provided by the loan applicant it transferred to a loan lending entity. The loan lending entity is enabled to manually/automatically update the loan application status, communicate with the loan applicant in real-time, modify details on the loan application and decide on the status of the loan application by approving or rejecting the loan application.

According to one embodiment of the present invention, a user verification module is provided. The user verification module is configured to receive preset verification information from the loan applicant and analyze the information provided. A plurality of parameters, which are related to the loan applicant, that are verified by the user verification module include photo, full name, email address, residential address, telephone number, date of birth, gender, marital status, social media accounts details, social media and networking activities, a plurality of centralized and legally approved personal identification numbers, educational qualifications, employment history, employment status, income details and bank account information. The user verification module is also configured to automatically verify the parameters and communicate the result of the verification to the loan applicant and the loan lending entity.

According to one embodiment of the present invention, a credit evaluation module is provided. The credit evaluation module is configured to receive authenticated and verified user information from user verification module. The credit evaluation module is also configured to verify a plurality of credit and financial data of the loan applicant from a plurality sources and prepare a credit profile of the loan applicant. The plurality of credit and financial data of the loan applicant include standardized credit scores, income statements, bank statements, credit card statements, investment details, tax filing details and e-commerce purchase histories. The credit evaluation module finalizes a credit profile of the loan applicant by a plurality of analyses including earning analysis, expenditure analysis, liability analysis, recurring expense analysis, expenditure-to-earnings ratio, liability-to-earnings ratio, credit card liability analysis, investment analysis, defaulted payments analysis, cash usage analysis, fund transfer patterns and analysis, multiple bank account activity analysis, delayed repayments analysis and surplus balance/account liquidity analysis. The credit evaluation module is configured to automate communication to the loan applicant and/or the loan lending entity, approving or rejecting a loan application and initiate lending of loan.

According to one embodiment of the present invention, a loan catalog management module is provided. The loan catalog management module enables the loan lending entities to create and manage a plurality of loan products and define the eligibility criteria for automatic approval/rejection of a loan application. The loan catalog management module is also configured to automatically perform the following actions: creating loan products, defining eligibility for availing loan products, configuring rule engine for automated approval/rejection of loan applications, modify loan products, removing loan products, defining loan products geographically and managing statistics of loan products.

According to one embodiment of the present invention, a loan health management module is provided. The loan health management module enables the loan applicant and the loan lending entity to track the status of all factors relating to the loan. The loan applicant is enabled to view EMI schedule and progress of loans on a computing device, receive notifications on repayments on a computing or communication device, update user's details if and when there are changes and initiate communication with the loan lending entities. The loan lending entities are enabled to view a plurality of status parameters of loans on a computing device, receive notification about changes in loan applicant's user information and initiate a communication with loan applicants.

These and other aspects of the embodiments herein will be better appreciated and understood when considered in conjunction with the following description and the accompanying drawings. It should be understood, however, that the following descriptions, while indicating the preferred embodiments and numerous specific details thereof, are given by way of illustration and not of limitation. Many changes and modifications may be made within the scope of the embodiments herein without departing from the spirit thereof, and the embodiments herein include all such modifications.

BRIEF DESCRIPTION OF THE DRAWINGS

The other objects, features and advantages will occur to those skilled in the art from the following description of the preferred embodiment and the accompanying drawings in which:

FIG. 1 illustrates a block diagram of a systemfor availing a loan through real-time validation and authentication of the loam applicant’s credentials and identity, according to one embodiment of the present invention.

FIG. 2 illustrates the applicant module of a system for availing a loan through real-time validation, according to one embodiment of the present invention.

Although the specific features of the present invention are shown in some drawings and not in others. This is done for convenience only as each feature may be combined with any or all of the other features in accordance with the present invention.

In the following detailed description, a reference is made to the accompanying drawings that form a part hereof, and in which the specific embodiments that may be practiced is shown by way of illustration. These embodiments are described in sufficient detail to enable those skilled in the art to practice the embodiments and it is to be understood that other changes may be made without departing from the scope of the embodiments. The following detailed description is therefore not to be taken in a limiting sense.

According to one embodiment of the present invention, a lead management module is provided. The lead management module enables a user to automatically apply for loans through a portable kiosk. The portable kiosk is a dedicated hardware module that enables a user to upload a plurality of preset information and credentials necessary to process a loan application. The portable kiosk comprises a plurality of sensors including biometric sensors, imaging sensors, audio sensors, location sensors and proximity sensors. The portable kiosk enables a loan applicant to check loan application eligibility, calculate EMIs, present a loan application, upload loan application documents, authenticate real-time through biometric sensors and track a loan application. The portable kiosk is communicatively coupled with a plurality of computing devices and network devices. The data provided by the loan applicant it transferred to a loan lending entity. The loan lending entity is enabled to manually/automatically update the loan application status, communicate with the loan applicant in real-time, modify details on the loan application and decide on the status of the loan application by approving or rejecting the loan application.

FIG. 1 illustrates a block diagram of a system for availing a loan through real-time validation and authentication of the loan applicant’s credentials and identity. The system comprises an Applicant module 101, a Lender module 102, a Loan Platform 103 and an Internet module 104. The Loan Platform 103 further comprises a Lead Management module 103a, Address Monitoring module 103b, a Loan Catalog Management module 103c, Loan Health Management module 103b, a Rule Engine module 103e, Artificial Intelligence module 103f, Credit Evaluation module 103g and User Verification module 103h. The Applicant module 101 is a dedicated hardware module that enables a user to upload a plurality of preset information and credentials necessary to process a loan application. The Applicant module 101 comprises a plurality of sensors including biometric sensors, imaging sensors, audio sensors, location sensors and proximity sensors. The Applicant module 101 enables a loan applicant to check loan application eligibility, calculate EMIs, present a loan application, upload loan application documents, authenticate real-time through biometric sensors and track a loan application. The Applicant module 101 is communicatively coupled with a plurality of computing devices and network devices through the Internet module 104.

FIG. 2 illustrates the applicant module of a system for availing a loan through real-time validation. The applicant module 101 comprises an input module 101a, an output module 101b, a sensor module 101c, a computing module 101d, a communication module 101e and a digital storage module 101f.

Although the embodiments herein are described with various specific embodiments, it will be obvious for a person skilled in the art to practice the embodiments herein with modifications.

ADVANTAGES OF THE INVENTION

The present invention is a system and method for real-time validation and authentication for enabling a financial transaction. The present invention also provides a kiosk for enabling an automated real-time communication between a user applying for a loan and an entity providing the loan. The present invention provides a reliable and automated real-time system to enable application and approval loans. The present invention provides a portable kiosk that allows a loan applicant to digitally provide the required authentication and verification information. The present invention also provides methods to reliably process the information provided by a loan applicant and automatically approve or reject a loan application.

The foregoing description of the specific embodiments will so fully reveal the general nature of the embodiments herein that others can, by applying current knowledge, readily modify and/or adapt for various applications such as specific embodiments without departing from the generic concept, and, therefore, such adaptations and modifications should and are intended to be comprehended within the meaning and range of equivalents of the disclosed embodiments. It is to be understood that the phraseology or terminology employed herein is for the purpose of description and not of limitation. Therefore, while the embodiments herein have been described in terms of preferred embodiments, those skilled in the art will recognize that the embodiments herein can be practiced with modifications. However, all such modifications are deemed to be within the scope of the claims.

Claims

A system is provided for enabling a user to avail a loan through real-time validation and authentication of the user’s credentials and identity, the system comprising:
an applicant module, wherein the applicant module further comprises an input module, an output module, a sensor module, a computing module, a communication module and a digital storage module;
a lender module;
a loan platform, wherein the loan platform further comprises a lead management module, an address monitoring module, a loan catalog management module, a loan health management module, a rule engine module, an artificial intelligence module, a credit evaluation module and a user verification module; and,
an Internet module.
The system according to claim 1, wherein the applicant module is a portable kiosk, and wherein the portable kiosk is configured to enable a loan applicant to upload a plurality of preset information and credentials necessary to process a loan application, and wherein the portable kiosk comprises a plurality of sensors including biometric sensors, imaging sensors, audio sensors, location sensors and proximity sensors, and wherein the portable kiosk enables a loan applicant to check loan application eligibility, calculate EMIs, present a loan application, upload loan application documents, authenticate real-time through biometric sensors and track a loan application, and wherein the portable kiosk is communicatively coupled with a plurality of computing devices and network devices.
The system according to claim 1, wherein the lead management module is configured to communicate with the applicant module and lender module, wherein the lender module is configured to be accessed by a loan lending entity, and wherein the lending module enables a loan lending entity to manually or automatically update the loan application status, communicate with the loan applicant in real-time, modify details on the loan application and decide on the status of the loan application by approving or rejecting the loan application.
The system according to claim 1, wherein the user verification module is configured to receive preset verification information from the loan applicant and analyze the information provided, and wherein a plurality of parameters, which are related to the loan applicant, that are verified by the user verification module include photo, full name, email address, residential address, telephone number, date of birth, gender, marital status, social media accounts details, social media and networking activities, a plurality of centralized and legally approved personal identification numbers, educational qualifications, employment history, employment status, income details and bank account information, and wherein the user verification module is also configured to automatically verify the parameters and communicate the result of the verification to the loan applicant and the loan lending entity.
The system according to claim 1, wherein the credit evaluation module is configured to receive authenticated and verified user information from user verification module, and wherein the credit evaluation module is also configured to verify a plurality of credit and financial data of the loan applicant from a plurality sources and prepare a credit profile of the loan applicant, and wherein the plurality of credit and financial data of the loan applicant include standardized credit scores, income statements, bank statements, credit card statements, investment details, tax filing details and e-commerce purchase histories, and wherein the credit evaluation module finalizes a credit profile of the loan applicant by a plurality of analyses including earning analysis, expenditure analysis, liability analysis, recurring expense analysis, expenditure-to-earnings ratio, liability-to-earnings ratio, credit card liability analysis, investment analysis, defaulted payments analysis, cash usage analysis, fund transfer patterns and analysis, multiple bank account activity analysis, delayed repayments analysis and surplus balance/account liquidity analysis, and wherein the credit evaluation module is configured to automate communication to the loan applicant and/or the loan lending entity, approving or rejecting a loan application and initiate lending of loan.
The system according to claim 1, wherein the loan catalog management module enables the loan lending entities to create and manage a plurality of loan products and define the eligibility criteria for automatic approval/rejection of a loan application.
The method according to claim 6, wherein the loan catalog management module is configured to automatically perform the following actions: creating loan products, defining eligibility for availing loan products, configuring rule engine for automated approval or rejection of loan applications, modify loan products, removing loan products, defining loan products geographically and managing statistics of loan products.
The system according to claim 1, wherein the loan health management module enables the loan applicant and the loan lending entity to track the status of all factors relating to the loan, and wherein the loan applicant is enabled to view EMI schedule and progress of loans on a computing device, receive notifications on repayments on a computing or communication device, update user's details if and when there are changes and initiate communication with the loan lending entities, and wherein the loan lending entities are enabled to view a plurality of status parameters of loans on a computing device, receive notification about changes in loan applicant's user information and initiate a communication with loan applicants.